Galva TIF district could broaden
A joint review board met July 8 and made a motion to extend Galva's TIF 2 district to include 43 more acres. More steps are needed if the extension is to occur.
The 43 acres includes a house at the north end of Northeast Second Street plus land that goes north and wraps around to the west, including the former Sportsman Lake. The property is entirely owned by Big River Resources, which is building the ethanol plant.
At a June 9 joint review board meeting, City Administrator David Dyer said the city would like to see a biodiesel plant, some type of renewable fuel complex or a wind mill substation built on the land. The biodiesel plant would use the waste oil from the ethanol plant or soybeans for production.
Dyer also said he would like to see a road built between Route 34 and Trolley Road, to come out where the road goes north past the St. John Catholic Cemetery, as well as upgrades to Trolley Road.
Properties in TIF districts pay real estate taxes, but those taxes are put back into the TIF fund, to be used for incentives and improvements. Galva has three TIF districts.
The board had 30 days to make the recommendation on the addition to the TIF
Dyer stressed several times June 9 that Big River would not have considered building the ethanol plant in Galva if the city did not have a TIF district. The city has projected giving back to the ethanol plant an estimated $14.9 million in project costs, through TIF funds. The total cost of building the plant is projected to be about $172 million,
Big River officials have said.
Michael Weber of Peckman Guyton Aibers and Viets, Inc., whom the city has retained for the TIF extension, said June 9 that the property taxes on another plant of similar size in Illinois are $3 million per year, assessed at $35 million.
The city would receive the tax money and then when the incentives are paid
in full to Big River, the TIF district would be dissolved.